The Centre for Democratic Development (CDD-Ghana) has released a recent report by Afrobarometer which reveals that Ghanaians are willing to pay taxes to engender economic development.
According to the report, “72 per cent of Ghanaians are willing to pay more in taxes to help finance the country’s development”. It further suggests that Ghanaians believe finance can be sourced from “domestic resources rather than through external loans”.
Analysis from the survey also reveals that “citizens are more supportive of taxation” if they reckon government is delivering basic services.
It, however, revealed that majority of citizens find it difficult to know the taxes and fees they are supposed to pay and how the government uses tax revenues.
Also, it disclosed that“many citizens also express mistrust of tax authorities and see widespread corruption among tax officials”.
During the 2021 budget statement presented by Mr. Osei Kyei Mensah Bonsu, government introduced new taxes, including a 1% Covid-19 levy.
Following this, the Minority in Parliament opposed the decision by government to introduce the new taxes. They believed that the imposition of these taxes will have dire effects on the economic and social welfare of Ghanaians.
Statistical sentiments from Ghanaians on taxes
Reports from the Afrobarometer survey also reveals that seventy-nine percent of citizens were in favour of government’s collection of taxes. Fewer than two out of ten however disagreed for external loans.
The report further indicates that 82 per cent of citizens were in favour of government’s tax collection. This was on the basis it improves basic health systems in the country.
For some 81 per cent and 82 per cent of Ghanaians, the government can demand payment of taxes if it addresses educational needs. They also gave credence to government’s demand given there’s provision of water and sanitation services.
Eighty-three per cent of citizens who partook in the survey insists government has every right to collect taxes if only it embarks on maintenance of roads and bridges.
Meanwhile, only thirty-nine percent reveal they trust the tax authorities. Conversely, more than eighty-four percent believe tax officials are corrupt. This includes 34% who also believe that most “are involved in graft”.
AGI paints a bleak picture of taxes
Earlier, the Association of Ghana Industries like most stakeholders however bemoaned the deluge of taxes in the 2021 budget.
According to AGI’s representative, Adobea Asiama-Aboagye, it will be prudent if government reconsiders the imposition of the taxes. She reveals the move will help in the sustainability of business operations.
The AGI representative further revealed that businesses will require revamping to recover from the pandemic.
She further averred that the existing economic conditions amidst the taxes will only aggravate the plight of businesses. This is because, there are difficulties on the production and manufacturing value chains of businesses.
In concluding, she pointed that if government does not review taxes, businesses will be unable to take advantage of the AfCFTA.
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